Wow, what a surprise, you mean to tell me you only noticed this now? Why not when the market was tanking and Apple was used to take it down??? Holly cow Apple is 20% of NDX and market is heading higher, it has been for a while now and someone JUST now noticed it.

1:54 pm September 27, 2010

Kamgirl47 wrote :

Apple would go higher if they'd just cut a deal with Verizon...I know so many people who'd like an iPhone but won't go with AT&T... come pn Apple - get with the program!

1:57 pm September 27, 2010

oldguy canada wrote :

remember NT Northern Telecom, where are they now!!!!!!!! late 90's way overweight on the TSE ans single handed skewered the TSE Index

2:04 pm September 27, 2010

Anonymous wrote :

for God sake bring the IPHONE to Verizon . the blind can see it will benefit all .

2:20 pm September 27, 2010

Climateer wrote :

Ummm...

Oh never mind, you had to be there.

2:31 pm September 27, 2010

BobAB wrote :

you should thank AAPL for this, otherwise it would be down or flat at best. I had AAPL before buying QQQQ, though it did not rise as high as AAPL, having dividends is nice.

2:52 pm September 27, 2010

JRon wrote :

The article reads like a modern day version of "the sky is falling". Today's version goes
"the sky may fall". Indeed it may, but what doesn't eventually fall? Say it often enough and
long enough and you will be right - in the end.

5:12 am September 30, 2010

Bruce Weber. London Business School wrote :

Funds that track indexes can create pricing oddities in index components when stocks enter or exit, and at quarterly rebalancings. However the article is WRONG to say "... the rich richer and the poor poorer as it creates a self reinforcing momentum from indexers." Just the opposited occurs. When NASDAQ made the change to Nasdaq-100 to be a modified capitalization-weighted index of non-financials December 21, 1998, the largest five stocks in the index at that time totaled 61% of its value. The index "modification" limits the weighting of securities that comprise over 4.5% of the index to increase diversification. The adjustment is fairly complicated and is done quarterly. The effect though is that stocks that have risen and have an unacceptably large weight (24% for individual stocks) are re-weighted down. Therefore indexers must sell the winners and buy the low-weighted losers in the index. An attraction of equal-weighted index ETFs is the quarterly rebalancing sells stocks that have gained (perhaps becoming overvalued) and buy the downtrodden stocks in the index.

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